CASE STUDY MANAGING COSTS AND REVENUES You are the Administrator of the Radiology Department responsible for the day to day operation as well as developing the capital budget. Your capital budget for fiscal year 2015(July 1, 2014 to June 30, 2015)is $1 million. You have received two capital requests. One from the Medical Director of Mammography requesting a new state of the art digital mammogram machine at the cost of $800,000. This department has won awards for its outreach to poor and low income women who otherwise would not have access to mammograms. The second request is from the Medical Director of the MRI Department requesting a state of the art open MRI eliminating fears patients have going into the MRI tube. The cost of the new MRI is $800,000. Both machines run faster, produce clearer films , meet all safety / radiation emission standards and can get the patient in and out faster resulting in enhanced patient satisfaction.